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I tried deducting streaming services during college when I had some acting income and got audited! The IRS agent told me that you need to be very careful about how you claim these. Here's what I learned: 1. You absolutely NEED income from acting to claim these deductions 2. You should only deduct the percentage used for professional research 3. You need documentation showing which specific shows/films were watched for professional purposes I ended up having to pay back the deductions plus a small penalty because I claimed 100% of my streaming services without proper documentation. Don't make my mistake!
As a tax professional who works specifically with entertainment industry clients, I want to emphasize a few key points that haven't been fully addressed: Carmen, since you mentioned having $3,200 in acting income, you're in a unique position where partial deductions may be legitimate. However, the IRS scrutinizes entertainment deductions heavily, so documentation is absolutely critical. Here's what I recommend: 1. Calculate a realistic business-use percentage - don't claim more than 20-30% unless you can genuinely justify it 2. Keep detailed records showing specific professional viewing (studying performances for auditions, researching roles, etc.) 3. Consider opening a separate business checking account for your acting income and expenses - this shows clear separation between personal and professional finances Also, remember that as a student, you might benefit more from education credits than from business deductions. Run the numbers both ways to see which gives you the better tax outcome. Sometimes claiming the American Opportunity Credit on your education expenses provides more tax savings than itemizing small business deductions. The bottom line: Yes, you can likely deduct a portion, but be conservative and keep meticulous records. The $3,200 income threshold makes this viable, but don't get greedy with the percentages.
Hey there! I had the same identity verification nightmare a few months ago. After trying endlessly to get through on the phone, I used Claimyr (claimyr.com) and it changed everything. The service basically waits on hold with the IRS for you and then calls you when an agent is ready. It was the only way I finally spoke to someone after weeks of frustration. The conversation with the agent took less than 10 minutes and my refund was processed the following week. Best decision I made during tax season!
Honestly it was the best money I've ever spent to finally get my questions answered. I was able to pay some urgent bills with my refund once it was released, so for me it was absolutely worth every penny.
I used it too last month and got through to the IRS in about an hour. Had been trying on my own for weeks with no luck. Definitely recommend.
I feel your pain! I was in the exact same situation about a month ago - stuck in identity verification limbo and couldn't get through to anyone at the IRS no matter what time I called. It's absolutely maddening when you need that refund for important expenses like medical bills. Here's what finally worked for me: I called the regular IRS customer service line (1-800-829-1040) instead of the identity verification line. When I got through (which still took several attempts), I explained my situation and they were actually able to transfer me to someone who could help with identity verification. The agent told me that many people don't realize the general line can sometimes assist with this. Also, if you have your transcript available, you might want to try calling right at 7am EST and keep hitting redial for about 20-30 minutes straight. I know it sounds tedious but that's how I finally got through initially. Hang in there - I know how frustrating this is but you'll get through it!
This is really helpful advice! I hadn't thought about trying the general customer service line instead of going straight to the identity verification number. It makes sense that they might be able to transfer you internally. I'm definitely going to try calling 1-800-829-1040 first thing tomorrow morning and see if they can help me get connected to the right department. Thanks for sharing what worked for you - it gives me hope that there might be another way through this maze!
I just want to echo what everyone else is saying about Maine being incredibly efficient! I moved here from New York last year and the difference is absolutely incredible. In NY, I was waiting 4-6 weeks minimum for my state refund, and that was with e-filing and direct deposit. Here in Maine, I filed on February 22nd and had my money by March 4th - exactly 8 business days. What really impressed me was how user-friendly their online portal is compared to other states. You can actually track your return through each stage and the status updates are meaningful, not just generic "processing" messages. As a fellow student (I'm at USM), I totally understand the stress about getting your refund in time for tuition. Based on everyone's experiences here, it sounds like Maine really does prioritize education-related returns, which is awesome for us! You should definitely be able to count on getting your money much faster than your California experience.
This is so encouraging to hear from a fellow student! I'm actually considering transferring to USM next year, so it's great to know the tax situation is student-friendly. The fact that Maine seems to prioritize education-related returns is really reassuring - I had no idea states actually did that! Coming from California where everything tax-related felt like it moved at a snail's pace, this is such a relief. Do you know if the processing time stays consistent throughout the year, or does it slow down during peak filing season? I'm hoping to file within the next week or two and want to make sure I'm not hitting a busy period that might delay things.
Wow, this thread is incredibly helpful! I just moved to Maine from Florida (where there's no state income tax) so this is my first time dealing with Maine taxes. Reading all these positive experiences about 5-10 day processing times is such a relief compared to what I was expecting based on horror stories from friends in other states. I'm planning to file next week and really hoping to get my refund quickly since I'm starting graduate school in the fall and need the money for deposits and fees. It sounds like Maine really has their act together compared to most states! Quick question for everyone - is there a particular day of the week that's better to file, or does it not really matter as long as you e-file with direct deposit?
Welcome to Maine! As someone who's been filing here for a few years now, I can tell you that the day of the week doesn't really make a difference for processing speed - Maine Revenue Services processes returns continuously throughout the week. What matters more is getting your return in earlier rather than later in the filing season, which it sounds like you're already planning to do! Since you're coming from Florida where there's no state income tax, make sure you have all your documentation organized - Maine is pretty straightforward but they do verify everything thoroughly. The good news is their verification process is much faster than other states I've dealt with. You should definitely expect that 5-10 day timeframe everyone's been mentioning, especially if you e-file with direct deposit. Good luck with grad school!
From my experience as a Maine tax preparer, timing really doesn't matter much for processing speed - Maine Revenue Services runs their systems pretty consistently throughout the week. What I always tell my clients is that e-filing with direct deposit on any day Monday through Friday will get you into the same processing queue. The bigger factor is just avoiding the absolute peak rush (usually mid-March to mid-April), which you're already doing by filing next week! One thing that might help coming from Florida - Maine's income tax is actually pretty straightforward compared to states like Massachusetts or New York. Just make sure you have your W-2s, any 1099s, and documentation for any deductions ready to go. The system will flag incomplete returns immediately, but complete returns move through really quickly. You should definitely expect that 5-10 day window everyone's been talking about!
One thing nobody's mentioned - if you're paying people regularly like that cousin who did your design work, and it's over $600 in a year, you should probably be sending them a 1099-NEC regardless of how you paid them on Venmo. The IRS doesn't care about Venmo's categories but they do care about tracking payments to contractors.
Wait seriously? I paid my friend like $1200 over the year to help with my Etsy shop but all through venmo as friends. I didn't send any 1099s. Am I in trouble??
You're not necessarily "in trouble" but you should issue a 1099-NEC for 2024 since you paid over $600. The deadline for sending it to your friend is January 31st, and you need to file it with the IRS by the same date. You can still do this even though the payments were through Venmo - the payment method doesn't matter for 1099 requirements. Your friend will need to report that income on their tax return regardless of whether they get a 1099, but issuing one protects you and ensures proper reporting. You can get the forms from the IRS website or use tax software that handles 1099s.
Just to add another perspective - I've been doing freelance graphic design for 3 years and use Venmo for probably 60% of my business transactions, all marked as "personal" to avoid fees. Never had an issue with the IRS. What matters is that you can substantiate the expense was legitimate and business-related. For your woodworking business, I'd recommend creating a simple system now before tax season gets crazy. I use a basic Google Sheet with columns for: Date, Amount, Recipient, Business Purpose, and Project/Client. Takes 30 seconds per transaction but saves hours during tax prep. One tip that's helped me - when I send Venmo payments for business stuff, I still put a brief note in the transaction even though it's marked "personal." Something like "lumber order" or "logo design." That way if anyone (including myself months later) looks at the transaction, there's at least some indication of what it was for right in the app. Your cousin's design work and your brother's wood pickup are absolutely deductible regardless of how Venmo categorized them. Just keep some record of what each payment was for and you're golden.
This is really helpful advice! I'm just starting out with my own small business and was wondering about the same Venmo situation. Quick question - do you ever worry about potential issues if the IRS sees all these "personal" transactions but you're claiming them as business expenses? Like, could that raise red flags during an audit even if you have good documentation?
Omar Zaki
I'm in almost the exact same situation! Filed February 8th, transcript updated last Wednesday with credit codes but still no 846. This is my second year filing in the US and I was panicking thinking something was wrong. Reading everyone's responses here is so reassuring - sounds like this timeline is actually normal this year, just frustrating when you're waiting. I've been checking my transcript obsessively every day but I guess I should focus on those Wednesday/Thursday night updates mentioned above. Thanks for posting this question, you're definitely not alone in this waiting game!
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Cassandra Moon
ā¢@Omar Zaki I m'so glad you posted this! I was starting to feel like I was the only one in this situation. Filed February 7th myself and have been in the same boat - transcript shows credits but no 846 code yet. It s'such a relief to know this timeline is actually normal this year, even though it s'incredibly stressful when you re'waiting for that refund. The obsessive transcript checking is so real! I ve'been refreshing multiple times a day but you re'right, focusing on those Wednesday/Thursday updates makes more sense. Here s'hoping we both see our DDDs soon! š¤
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James Martinez
I'm dealing with the exact same timeline and anxiety! Filed February 5th and my transcript updated with credit codes last Thursday, but still no 846 code. This is my first year navigating the US tax system after moving here for work, and I had no idea what any of these codes meant until reading this thread. The explanations about cycle phases and normal processing times are incredibly helpful - I wish the IRS website explained things this clearly! I've been checking my transcript multiple times daily (probably driving myself crazy), but it sounds like I should focus on those Wednesday/Thursday night updates instead. It's both frustrating and reassuring to see so many others in the same boat. The waiting is especially stressful when you're not familiar with how long things typically take. Based on everyone's experiences here, it seems like 6-8 weeks is becoming the new normal for early February filers, even without any holds or complications. Thanks to everyone sharing their timelines and knowledge - this community is so much more helpful than trying to decode IRS publications on your own!
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